Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,740 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $384,683 | 0.58% | F |
| 3BR | $2,680 | $457,649 | 0.59% | F |
| 4BR | $2,960 | $708,181 | 0.42% | F |
| 5BR | $3,434 | $865,502 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 08043, Voorhees Township, NJ, reveals a significant disparity between the federal market rent (FMR) and the actual market rent, impacting potential investment yields.
The FMR for a two-bedroom apartment in Voorhees Township for fiscal year 2024 is set at $2160 annually, which translates to a monthly rate of $180. This figure represents the maximum amount that a Section 8 voucher holder can pay towards rent. In contrast, the market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $2,080 annually, or approximately $173.33 monthly.
To derive the gross yield for both scenarios, we divide the annual rental income by the median home value. For the FMR scenario, the annualized rental income of $2160 against a median home value of $541,247 yields an implied gross yield of about 0.4%. Conversely, the market rent of $2,080 results in an even lower implied gross yield of roughly 0.38%.
Given the 38.0% renter density in Voorhees Township, it's evident that a significant portion of the population relies on rental housing. However, the average days on market (DOM) of 14 days suggests a relatively quick turnover rate for rentals, indicating strong demand. Despite this, the low gross yields derived from both the FMR and market rent scenarios suggest that the returns on investment for properties participating in the Section 8 program would be minimal.
The FMR scenario, while providing a more stable and predictable income stream due to government subsidies, offers only a slightly higher gross yield compared to the market rent scenario. This difference is marginal, considering the administrative overhead and compliance requirements associated with Section 8 participation.
In conclusion, while the quick turnover rate and high renter density point to a robust rental market, the low gross yields indicate that properties in ZIP 08043 may not offer attractive returns for investors seeking substantial financial gains through Section 8 participation. The decision to invest should weigh these factors carefully, focusing on the stability of income rather than high yields.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.